PNY First to License Flash-Related Technologies from Sandisk.

PNY Technologies, a well-known supplier of graphics cards, flash and random access memory modules, said this week it agreed to pay royalties to Sandisk Corp., a large supplier of flash-based products. As a result, Sandisk’s intention to obtain royalties from its competitors on the flash market begins to fulfill.

Back in October, 2007, Sandisk sued 25 suppliers of various flash-based devices claiming that USB flash drives, CompactFlash cards, multimedia cards, MP3/media players and/or other removable flash storage products infringe patents of Sandisk. The company was seeking damages and a permanent injunction in the federal court actions, as well as a permanent exclusion order from the U.S. International Trade Commission banning importation of the products into the United States. PNY has become the first company to resolve the legal dispute with Sandisk by signing a cross-licensing agreement.

“The cross-license agreement provides PNY a competitive market advantage by ensuring it can continue to market and sell USB drives and CompactFlash cards, now as Sandisk licensed products, and assures that PNY’s supply of such flash memory products will not be disrupted by the patent claims pending against other parties,” a statement by the two companies reads.

Under the terms of the cross-license, PNY will pay Sandisk royalties on flash memory products that were not previously licensed. The specific terms of the cross-license are confidential.